Investor hopes propel PSX above 105k

Easing inflation, rate cut talk help KSE-100 index gain 545 points

KARACHI:

Pakistan Stock Exchange (PSX) continued to enjoy its record-eclipsing streak on Wednesday as the KSE-100 index surged past 105,000 points on the back of investor optimism, easing inflation and economic stability.

The market gained nearly 550 points and reached a new peak, getting major support from sectors such as banking, energy and technology.

The positive momentum reflected the strengthening economic fundamentals and expectations of continuous growth. Investors awaited the State Bank of Pakistan's (SBP) policy rate decision in the upcoming monetary policy committee meeting, scheduled for December 16.

Moreover, the inflation rate, measured by the Consumer Price Index (CPI), decelerated to 4.9% in November compared to the same month of last year, which provided more room for the central bank to significantly slash its policy rate.

"Stocks closed at a new all-time high, led by oil and energy sectors, amid upbeat data of petroleum sales, which surged 15% year-on-year (YoY), while cement sales increased 5.6% YoY in November," Arif Habib Corp MD Ahsan Mehanti observed.

"Imminent SBP policy rate cut, rupee stability and upbeat economic indicators for exports, trade deficit and the external account played the role of catalysts in record close at the PSX," he added.

At the end of trading, the benchmark KSE-100 index posted a gain of 545.26 points, or 0.52%, to 105,104.34.

Topline Securities, in its review, wrote that the KSE-100 index closed at an all-time high as the market maintained its bullish momentum and reached the intra-day high of 105,474 points.

Persistent buying by local institutions, coupled with high trading volumes, reflected strong investor confidence, fuelled by expectations of a reduction in interest rate in the upcoming monetary policy meeting, it said.

Major contributors to the index gains were Mari Petroleum, Hub Power, Airlink Communication, Millat Tractors and Pakistan State Oil, which collectively added 442 points.

Arif Habib Limited (AHL) commented that the PSX closed trading above the 105,000 mark in a choppy session.

Despite volatility, 54 shares rose while 44 fell. Mari Petroleum (+5.05%), Hub Power (+3.55%) and Airlink Communication (+8.65%) were the biggest contributors to the index gains, it mentioned.

On the other hand, Habib Bank Limited (-2.51%), MCB Bank (-1.07%) and Service Industries (-3.47%) were the largest drags.

Notable moves were seen in Pakistan Telecommunication Company Limited (+10%), Pakistan Aluminium Beverage Cans (+9.64%) and BF Biosciences (+7.82%).

The market continues to look higher, finding support at the 100,000 level, AHL added.

JS Global analyst Mubashir Anis Naviwala remarked that the KSE-100 surged to 105,104, gaining 0.5% day-on-day, driven by encouraging economic indicators such as the narrowing trade deficit and expectations of a policy rate reduction amid easing inflation.

Most actively traded stocks of the day were WorldCall Telecom, Cnergyico PK, Pakistan International Bulk Terminal and Pak Elektron.

Key sectors, particularly energy and petroleum, showed a strong performance. Traded value, which reached an impressive Rs50 billion, reflected substantial market engagement, reinforcing the bullish momentum, Naviwala said.

Overall trading volumes slightly decreased to 1.75 billion shares compared to Tuesday's tally of 1.77 billion. The value of shares traded during the day was Rs50.4 billion.

Shares of 467 companies were traded. Of these, 258 stocks closed higher, 180 fell and 29 remained unchanged.

WorldCall Telecom was the volume leader with trading in 257.5 million shares, gaining Rs0.14 to close at Rs1.61. It was followed by Cnergyico PK with trading in 213.2 million shares, gaining Rs0.13 to close at Rs6.85 and Pakistan International Bulk Terminal with 89.7 million shares, gaining Rs0.41 to close at Rs8.57.

During the day, foreign investors sold shares worth Rs627.6 million, according to the NCCPL.